MT 217 Wal-Mart
2013, 2014, and 2015 Ratio Analysis
The paper should include an evaluation section for the three groupings of ratio (A) then an overall comparison (B) to validate your team’s conclusion.
Consider these three area as the body of your ‘written review’.
A. Once each ratio analysis is completed please note:
1. Trends in Liquidity ratios ( both sets)
2. Trends in Profitability ratios (both sets)
3. Trends in Market ratios
Include any comments based upon these questions
B. Once the ratio analysis is completed please note:
1. Note a couple problem areas that you would investigate further.
2. Are there any other specific pieces of information that you would request from your management team with regards to this firm?
3. Would you invest money (yes – no) in this firm based on your analysis? What outcomes lead to this decision?
2015 2014 2013 Student A Liquidity ( set 1) Current 0.97 0.88 0.83 Quick 0.28 0.24 0.22 Student B Liquidity (set 2) Accts Receivable Turns 71.65 71.33 69.25 Accts Payable Turns 6.23 6.26 5.96 Student C Profitability (set 1) Return on Equity % 20.10% 20.61% 22.17% Return on Assets% 56.23% 54.78% 58.59% Student D Profitability (set 2) Operating (pre tax) Margin % 5.60% 5.60% 5.90% Net Profit (after tax) Margin % 3.40% 3.40% 3.60% Student E Market Ratio Earnings per Share 1.17 1.14 1.21 Price to Earnings ratio 8.55 7.9 6.61 14,000,000 shares outstanding Price per share $10.00 $9.00 $8.00
Period Ending 31-Jan-15 31-Jan-14 31-Jan-13
Cash And Cash Equivalents 9,135,000 7,281,000 7,781,000
Net Receivables 6,778,000 6,677,000 6,768,000
Inventory 45,141,000 44,858,000 43,803,000
Other Current Assets 2,224,000 2,369,000 1,588,000
Total Current Assets 63,278,000 61,185,000 59,940,000
Property Plant and Equipment 116,655,000 117,907,000 116,681,000
Goodwill 18,102,000 19,510,000 20,497,000
Other Assets 5,671,000 6,149,000 5,987,000
Total Assets 203,706,000 204,751,000 203,105,000
Accounts Payable 58,583,000 57,174,000 59,099,000
Short/Current Long Term Debt 6,689,000 12,082,000 12,719,000
Other Current Liabilities – 89,000 196000
Total Current Liabilities 65,272,000 69,345,000 72,014,000
Long Term Debt 43,692,000 44,559,000 41,417,000
Deferred Long Term Liability Charges 8,805,000 8,017,000 7,613,000
Minority Interest 4,543,000 5,084,000 5,395,000
Total Liabilities 122,312,000 127,005,000 126,439,000
Misc Stocks Options Warrants 0 0 116,000
Common Stock 323,000 323,000 202,000
Retained Earnings 85,777,000 76,566,000 72,978,000
Capital Surplus 2,462,000 2,362,000 4,000,000
Other Stockholder Equity -7,168,000 -1,505,000 -630,000
Total Stockholder Equity 81,394,000 77,746,000 76,666,000
Total Liabilities + Stockholder Equity 203,706,000 204,751,000 203,105,000
Period Ending 31-Jan-15 31-Jan-14 31-Jan-13
Total Sales 485,651,000 476,294,000 468,651,000
Cost of Goods 365,086,000 358,069,000 352,297,000
Gross Profit 120,565,000 118,225,000 116,354,000
Selling General and Administrative 93,418,000 91,353,000 88,629,000
Operating Profit ( for ratio) 27,147,000 26,872,000 27,725,000
Total Other Income/Expenses Net 113,000 119,000 186,000
Earnings Before Interest And Taxes 27,260,000 26,991,000 27,911,000
Interest Expense 2,461,000 2,335,000 2,249,000
Income Before Tax 24,799,000 24,656,000 25,662,000
Income Tax Expense 7,985,000 8,105,000 7,958,000
Minority Interest -736,000 -673,000 -757,000
Net Income From Continuing Ops 16,814,000 16,551,000 17,704,000
Discontinued Operations 285,000 144,000 52,000
Net Income (Net Profit) (for ratio) 16,363,000 16,022,000 16,999,000
14,000,000 shares outstanding
USE THESE PRICES Price per share $10.00 $9.00 $8.00
Assignment: Perform Financial Statement Analysis
Ratio analysis can provide both internal and external users with a tremendous amount of information
about firm performance. Select a publicly traded firm from the list below. Conduct a ratio analysis of
the firm and report your findings.
Complete a ratio analysis on the company for three years. Include the ratio, its results and what the
results mean for the company. Were there changes in the ratios, what could have caused the
change? (Liquidity ratios, profitability ratios, activity ratios, financing ratios, and market ratios).
The paper should include an individual evaluation section for each ratio then an overall comparison to
validate your conclusion.
Once the ratio analysis is completed answer the following questions.
1. Does the firm have any problem areas that you would investigate further if you were a
2. Are there any other specific pieces of information that you would request from your
management team with regards to this firm? If so, why?
3. Would you invest money in this firm based on your analysis?
Your paper should use correct APA formatting for your in-text citations to justify your discussion and
place references at the bottom of the paper. Avoid using quotations, you should paraphrase the
material and use an in-text citation to give credit to the reference. (Review the APA formats found in
the Kaplan Writing Center. To access the Kaplan Writing Center, select this link.)
Include in your final paper:
Cover page with each team member’s name that participated on the team project
Directions for submitting your Ratio Analysis Team paper
Make sure that you save a copy of the paper you submit.
1. To submit your paper, have one member of your group go to the Dropbox and select Unit 3:
Assignment 1 and follow the instructions.
2. Individually, each member of the group completes the peer evaluation form and individually
submits the peer evaluation to the Unit 3: Assignment 1 Dropbox. (file name:
Unit 3 Assignment 1: Team Assignment Financial
Content: 50 points
Response successfully answers the Assignment
question(s); thoroughly uses the text and other literature.
Includes a strong thesis statement, introduction and
conclusion. The main points of the paper are developed
clearly. All arguments are supported well (no errors in
logic) using outside sources as assigned.
Sources are primarily academic journals, with thoughtful
use Web sources. References are applied substantively to
the paper topic. Skillfully addresses counter-arguments
and does not ignore data contradicting its claim. Refers to
sources both in-text and in the reference page. 20
Achievement of a well-synthesized paper using
contributions from team participants to achieve a paper
that resembles the collective talents of the group. Team
member performed with integrity and respect towards
other participants of the team (peer evaluation). Points
will be deducted if the Peer Evaluation Form is not
submitted to the Dropbox.
Analysis: 30 points
Response exhibits strong higher-order critical thinking and
analysis (e.g., evaluation). Paper shows original thought. 10
Analysis includes proper classifications, explanations,
comparisons and inferences. 10
Critical thinking includes appropriate judgments,
conclusions and assessment based on evaluation and
synthesis of information.
Writing: 20 points
Grammatical skills are strong with typically less than one
Unit 3 [217: Finance]
4 of 4
error per page. Correct use of APA. 6
Appropriate to the Assignment, fresh (interesting to read),
accurate, (no far-fetched, unsupported comments), precise
(say what you mean), and concise (not wordy). 8
Project is in 12-point font. Narrative sections are doublespaced
with a double space between. Project is free of
serious errors; grammar, punctuation, and spelling help to
clarify the meaning by following accepted conventions.
MT 217 Wal-Mart